• Wells Fargo scraps its net-zero financed emissions targets for 2050 and discontinued sector-specific goals for 2030, citing external challenges.
• The bank will continue sustainability efforts in its own operations and maintain a $500 billion sustainable finance commitment.
• The move follows BP’s recent rollback of its climate goals and reflects a broader industry shift, with other major banks also exiting net-zero alliances.
• Critics argue such decisions signal a retreat from corporate climate responsibility.

Wells Fargo has scrapped its commitment to achieving net-zero financed emissions by 2050, marking a significant retreat from its prior climate goals.

The bank also dropped its sector-specific financed emissions targets for 2030, mirroring a broader trend among financial institutions reassessing their climate strategies amid political and economic pressures.

The decision follows BP’s controversial rollback of its climate targets last week, signaling a shift in corporate climate commitments as regulatory landscapes evolve.

Wells Fargo announced last week that it would no longer pursue net-zero financed emissions across its portfolio, nor would it continue sector-specific targets focused on high-carbon industries like oil and gas, power, aviation, steel, and automotive production.

The San Francisco-based bank cited external factors such as policy uncertainty, shifting consumer attitudes, and slow technological advancements as reasons for its decision.

While stepping back from its net-zero financing goals, the bank emphasized that it remains committed to sustainability efforts within its own operations, including achieving net-zero operational emissions by 2050 and reducing energy, water, and waste consumption by 2030.

The bank’s retreat echoes BP’s move last week to scale back its climate ambitions, cutting its 2030 emissions reduction target from 35-40% to 20-30%.

BP’s decision, driven by market conditions and investor pressure, faced criticism from climate advocates who accused the company of prioritizing short-term financial gains over long-term environmental responsibility.

Similarly, Wells Fargo’s announcement has raised concerns among environmental groups, who view the rollback as a signal that corporate America is wavering in its commitment to climate action.

Wells Fargo initially set its financed emissions targets in 2021 to align with the Paris Agreement and support a transition to a low-carbon economy.

At the time, CEO Charles Scharf emphasized the urgency of climate change, committing to financial strategies that would aid in reducing carbon footprints across industries.

However, the bank now argues that many of the conditions necessary for its clients to transition to lower-emitting models have not materialized, making its net-zero goals unattainable under current circumstances.

Despite this policy shift, Wells Fargo said it would continue financing sustainable initiatives and remains committed to deploying $500 billion in sustainable finance by 2030. 

From 2021 to 2023, the bank allocated $178 billion toward green projects, including $16 billion in renewable energy and $15 billion in clean transportation. However, critics argue that without explicit emissions reduction targets, such financing efforts may lack sufficient accountability.

The move follows Wells Fargo’s recent exit from the United Nations-backed Net-Zero Banking Alliance, a global coalition aimed at aligning financial institutions with net-zero emissions goals.

Goldman Sachs, JPMorgan Chase, Bank of America, Citi, and Morgan Stanley have also withdrawn from the group, reflecting a broader trend of major U.S. banks stepping back from stringent climate commitments.

These exits come amid a shifting political climate, with President Donald Trump’s administration reversing federal climate policies, including the U.S. withdrawal from the Paris Agreement and the suspension of green energy investments.